All other things the same, purchasing merchandise inventory would have no effect on the accounts receivable turnover ratio at a retailer.

Question

Quizplus · Accepted Answer

Accounts receivable turnover ratio is a measure of how quickly a retailer is able to collect its outstanding debts from its customers. Purchasing merchandise inventory would not have any direct impact on this ratio as it relates to the retailer's ability to collect payments from its customers, not its inventory purchases.

All Other Things the Same, Purchasing Merchandise Inventory Would Have